Green finance in banking industry: a systematic literature review

This study reviews the literature on green finance and highlights the emerging themes. This review is undertaken in the context of the growing global concern for environmental protection, action on climate change, and the pursuit of sustainable development goals. Employing a systematic review approach, this research critically examines and summarizes findings from 50 relevant studies. For this review, 50 papers published across 35 journals were selected with a particular focus on the most recent contributions that prioritize the subject of green finance. The literature review spans the period from 1980 to 2021. The aim of this study is to provide an overview of perspectives on green finance in the banking industry, and highlight key themes relating to green finance, including, but not limited to, environmental protection, climate change risk mitigation, technology and innovation, bank credit policies, and interest rates. The research question is: what do previous and current studies discuss under the topic of green finance? Through a comprehensive systemic review, this investigation reveals 22 distinct factors that significantly influence the adoption of green finance within banks. The ensuing discussion delves into the global imperatives, banking regulations, ethics, internal practices, risk and interest considerations, as well as the role of technology and innovation in enhancing awareness and understanding of green finance within the banking industry.